Companies and Brands
Under Armour Scores Solid Q3 Earnings and Guidance
Published:
Last Updated:
Under Armour Inc. (NYSE: UAA) released its third-quarter earnings report before the markets opened on Tuesday. The sports apparel firm posted $0.25 in earnings per share (EPS) on $1.44 billion in revenue, compared with consensus estimates of $0.12 in EPS and revenue of $1.42 billion. The same period of last year reportedly had EPS of $0.22 and $1.41 billion in revenue.
During the most recent quarter, restructuring and impairment charges totaled $19 million.
The company expects to incur approximately $200 to $220 million in pretax restructuring and related charges in connection with its previously announced 2018 restructuring plan. Through the third quarter of 2018, the company has recognized pretax costs of $154 million, inclusive of $24 million of pretax costs recognized in the third quarter.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $0.19 to $0.22 (up from the previous range of $0.16 to $0.19) and revenue to increase approximately 3% to 4%. Consensus estimates call for $0.17 in EPS and $5.18 billion in revenue for the year.
On the books, Under Armour’s cash and cash equivalents decreased by 35% to $169 million from the $258.0 million in the same period of last year.
Kevin Plank, Under Armour board chair and chief executive, commented:
Our third quarter results demonstrate that our multi-year transformation is on track. As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences. Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders.
Shares of Under Armour traded up over 23% early Tuesday to $22.45, in a 52-week range of $11.40 to $24.69. The consensus analyst price target is $19.11.
24/7 Wall St.Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
